Gartner forecasts that spending on AI-optimised servers will reach $202 billion in 2025, more than double that of traditional servers. Hyperscalers will dominate this market, accounting for over 70% of server purchases. Overall IT spending is projected to hit $5.61 trillion in 2025, driven by increased software costs and the demand for AI-enabled devices. Despite growing investment, expectations for generative AI applications are declining among CIOs.